Key Developments for Ripple's Stablecoin
Ripple announced today that its USD-backed stablecoin RLUSD has gained recognition as an Accepted Fiat-Referenced Token within Abu Dhabi’s ADGM. The approval comes from the Financial Services Regulatory Authority and allows licensed firms to use RLUSD for regulated activities under strict compliance rules. The decision adds new momentum to Ripple’s push for stablecoin expansion across the Middle East.
Ripple said the approval strengthens RLUSD’s role in regional finance. The company highlighted ADGM’s global reputation for strong oversight and clear digital-asset rules. Ripple added that more regulators in the region recently granted approvals for the stablecoin. The firm views these combined steps as evidence of growing institutional trust in its product.
Institutional Demand and Market Growth
Jack McDonald, Senior Vice President of Stablecoins at Ripple, stated that the ADGM decision supports their focus on compliance. He emphasized that trust and regulatory clarity remain essential for institutional finance. McDonald added that RLUSD now holds more than $1 billion in market capitalization, with rising demand from major institutions. According to McDonald, financial firms increasingly use RLUSD for collateral and payments.
RLUSD launched under a New York Department of Financial Services charter in late 2024. The token now exceeds $1.2 billion in market cap. The company stressed that RLUSD maintains a 1:1 USD backing through high-quality liquid assets. Ripple also pointed to safeguards such as reserve controls, asset segregation, independent attestations, and defined redemption rights. The firm stated these measures aim to meet expectations from regulators and banks.
Regional Expansion Strengthens Ripple’s Stablecoin Strategy
Ripple indicated that the UAE continues to set high standards for digital-asset regulation. Regional executives pointed to ADGM’s leadership in global compliance frameworks. Reece Merrick, Managing Director for the Middle East and Africa, said the recognition reflects strong regulatory alignment. He asserted that RLUSD meets ADGM’s demands for transparency and reliability. Merrick added that Ripple sees rising demand from partners across the region.
The new approval expands Ripple’s ability to support institutions seeking safe digital-asset tools. Merrick noted increased interest in payment solutions and infrastructure across the Middle East. According to him, Ripple continues engaging with regulators to accelerate innovation within secure frameworks. He highlighted that the region’s rapid adoption underscores its position as a global digital-finance hub.
ADGM's Perspective on Digital Asset Innovation
ADGM officials also commented on the recognition. Arvind Ramamurthy, Chief Market Development Officer, stated that Ripple achieved an important milestone. He explained that ADGM built its frameworks to support innovative firms with strict governance standards. Ramamurthy added that ADGM aims to foster stability while encouraging growth in digital finance. He concluded that Abu Dhabi will continue strengthening its position as a leading center for financial technology.
Enterprise Use Cases and Future Integration
Ripple stated that RLUSD’s regulatory clarity supports several enterprise use cases. The company plans to integrate the stablecoin into its cross-border payment system. This integration will help institutions move money more easily between traditional and digital rails. The firm also anticipates RLUSD will support on- and off-ramp services across its ecosystem. Additionally, RLUSD is expected to play a role in capital market products through Ripple Prime.
Broader Regional Momentum and Partnerships
The ADGM decision follows strong momentum across the Middle East and Africa. The company recently announced a partnership in Bahrain, marking Ripple’s first expansion into the Kingdom. Ripple also added its first African custody client through Absa Bank. The firm indicated that both steps highlight a broader regional shift toward regulated digital-asset services.
Earlier partnerships reinforced this pattern. Zand Bank and Mamo became the first UAE firms to adopt its blockchain payment offering. The company views these customers as early indicators of growing enterprise interest. Ripple anticipates more regional banks and payment providers will explore its platforms over the next year.